BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 992


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          Date of Hearing:   May 6, 2015


           ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT, AND SOCIAL  
                                      SECURITY


                                  Rob Bonta, Chair


          AB 992  
          (Committee on Public Employees, Retirement, and Social Security)  
          - As Introduced February 26, 2015


          SUBJECT:  County Employees Retirement Law of 1937:  disability  
          retirement:  modification of allowance


          SUMMARY:  Clarifies that a member of a retirement system  
          established under the County Employees' Retirement Law of 1937  
          ('37 Act) who retired for service and is later granted a  
          disability retirement benefit may change their retirement  
          option.  


          FISCAL EFFECT:  Unknown.  This bill is keyed non-fiscal by the  
          Legislative Counsel.


          COMMENTS:  Under existing law, a '37 Act member who files for  
          disability retirement may, if eligible, retire for service while  
          their disability retirement application is pending.  If the  
          member is later found to be eligible for disability retirement  
          benefits, appropriate adjustments are made to their retirement  
          allowance retroactive to the effective date of his or her  
          disability retirement.

          While most '37 Act retirement systems would allow a retiree  








                                                                     AB 992


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          under the above scenario to change their retirement option if  
          the retirement board grants a disability benefit, there appears  
          to be a conflict between two sections of existing law.

          Government Code Section 31760 precludes changes to a member's  
          retirement election after receipt of the first payment of the  
          retirement allowance.  Government Code Section 31725.7(d) states  
          that the optional or unmodified type of allowance selected by  
          the member at the time of retirement for service shall not be  
          binding as to the type of allowance the member receives if the  
          member is awarded a disability retirement.


          AB 992 amends Government Code Section 31760 to clarify that a  
          member who retired for service and is later granted a disability  
          retirement benefit may change their retirement option.


          REGISTERED SUPPORT / OPPOSITION:




          Support


          State Association of County Retirement Systems (Sponsor)


          Los Angeles County Employees Retirement Association




          Opposition


          None on file









                                                                     AB 992


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          Analysis Prepared by:Karon Green / P.E.,R., & S.S. / (916)  
          319-3957